Matsa puts its gloves up in Devon battle
PERTH (miningweekly.com) – Junior Matsa Resources has entered into a standstill agreement with fellow-listed Linden Gold Alliance over the Devon joint venture (JV).
The company on Friday said that the two companies were in confidential, without prejudice, discussions and were hoping to reach a commercial dispute regarding the JV.
Matsa in September issued Linden a notice of default event under the mine management and JV agreement for the Devon gold mine, following Linden’s release of a definitive feasibility study (DFS) for the project late in August.
Matsa has maintained that the company had neither approved nor authorised the outcomes or the public disclosure of the study released by Linden.
Linden’s DFS estimated that the Devon openpit project would require a life-of-mine (LoM) capital investment of A$81-million, to deliver 38 370 oz of gold over a 14-month mine life, at a LoM operating cost of A$43.2-million.
Based on a gold price of A$2 750/oz, the project is expected to generate revenue of A$74-million, free cash flows of A$23.4-million and an internal rate of return of 387%.
Matsa on Friday said that with the standstill agreement now in place, the two companies would not make any further claims or demands against each under until October 10.
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